Energy

This partnership aims to enhance sustainable development and advance climate action initiatives throughout the continent. (Image source: Adobe Stock)

The International Renewable Energy Agency (IRENA) has formed a significant partnership with Africa50, a leading pan-African infrastructure investment and asset management firm

As part of this agreement, Africa50 has committed up to US$100mn to support and co-finance renewable energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform. This partnership aims to enhance sustainable development and advance climate action initiatives throughout the continent.

The agreement was signed on the margins of the OPEC Fund Development Forum in Vienna by IRENA director-general, Francesco La Camera and Africa50 CEO, Alain Ebobissé.

"For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly," said La Camera. "With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue. Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa."

Alain Ebobissé, CEO of Africa50 said, “The continent must focus on the dual goals of reducing emissions and accelerating economic development. Investing in and developing transformational renewable infrastructure is a critical step to achieving net-zero. The IRENA ETAF platform will be an important launchpad to scaling and accelerating our investments into renewable projects that will ultimately reduce the negative impact of climate change on our people and help build a more sustainable future”.

Established in 2021 with backing from the United Arab Emirates, the Energy Transition Accelerator Financing (ETAF) platform aims to scale up renewable energy projects that align with developing countries' Nationally Determined Contributions (NDCs). It seeks to enhance energy access and security for communities, promote economic growth, and foster diversification.

Africa50's recent involvement has expanded the ETAF Platform to include 14 partners, collectively pledging US$4.15bn. This growth underscores its status as a leading inclusive financing platform for transitioning to renewable energy. The partnership capitalises on IRENA's global membership to attract project proposals through the ETAF Platform and Africa50's expertise in project development and equity financing.

In September 2024, IRENA plans to co-host the Accelerated Partnership for Renewables in Africa (APRA) Investment Forum with the Kenyan government. This event aims to facilitate connections between project developers and potential financiers through a curated matchmaking program. It will showcase projects from APRA partners and other international organisations in support of APRA's development objectives.

Orange Energies has aimed to make energy more accessible, becoming a preferred partner for energy producers in regions where half the population lacks electricity. (Image source: Adobe Stock)

Orange Energies opened its digital platform, Orange Smart Energies, to all energy producers, helping them secure their revenues and further support energy inclusion

This initiative aims to boost energy inclusion by providing easy, prepaid access to energy through solar kits and smart meters. The IoT platform tackles profitability challenges faced by African energy producers by reducing the risk of non-payment.

Originally developed by Orange and enhanced in 2021, Orange Smart Energies is now accessible to all energy producers in Africa and the Middle East. It guarantees customer payments via mobile money. The business model, based on a partnership between Orange and energy producers, allows Orange Energies to offer a digital service and distribution network that improves energy access in rural areas, reaching even the most remote locations. This universal platform uniquely supports both pay-as-you-go solar equipment and prepaid smart meters.

Since its launch in 2017, Orange Energies has aimed to make energy more accessible, becoming a preferred partner for energy producers in regions where half the population lacks electricity. It helps electricity companies enhance account receivable collections. Operating in 12 countries (DRC, Madagascar, Cameroon, Senegal, Côte d’Ivoire, Central African Republic, Burkina Faso, Mali, Sierra Leone, Liberia, Guinea, and Jordan), Orange Energies serves over 300,000 households daily and continues to grow its customer base and regional presence across the continent.

Jérôme Hénique, CEO of Orange Middle East and Africa, commented, “Using digital technology to improve the energy inclusion of African people has been our ambition since day one. By opening up our Orange Smart Energies platform to all energy producers, we are taking a major step forward in our commitment to universal access to energy in Africa and the Middle East."

Nat-Sy Missamou, senior vice-president of Orange Energies for Africa and the Middle East added, "We are working with energy producers to help them sustain their business in African markets. Leveraging existing digital and financial inclusion solutions, our pay-as-you-go service is delivered through a distribution model tailored to African markets."

Global primary energy consumption overall was at a record absolute high in 2023. (Image source: Adobe Stock)

The Energy Institute (EI) and co-authors KPMG and Kearney have launched the annual edition of the Statistical Review of World Energy, presenting global energy data for 2023

“Energy is central to human progress,” said EI president Juliet Davenport. “It is also now central to our very survival. With global temperature increases averaging close to 1.5°C, 2023 was the warmest year since records began, and the increasingly severe impacts of climate change were felt across all continents.

“In this Year’s Statistical Review, we report on another year of highs in our energy hungry world. 2023 saw record consumption of fossil fuels and record emissions from energy, but also record generation of renewables, driven by increasingly competitive wind and solar energy.”

Key highlights of the report include:

Record global energy consumption

Global primary energy consumption overall was at a record absolute high, up 2% on the previous year to 620EJ. Global fossil fuel consumption reached a record high, up 1.5% to 505EJ (driven by coal up 1.6%, oil up 2% to above 100 million barrels for first time, while gas was flat). As a share of the overall mix they were at 81.5%, marginally down from 82% last year. Emissions from energy increased by 2%, exceeding 40 gigatonnes of CO2 for the first time.

Solar and wind drives renewable generation

Renewable generation, excluding hydro, was up 13% to a record global high of 4,748TWh. This growth was driven almost entirely by wind and solar and accounted for 74% of all net additional electricity generated. As a share of primary energy use, renewables (excluding hydro) were at 8%, or 15% including hydro.

Gas rebalancing in Europe

European gas demand fell by 7% following a fall of 13% the previous year. Russia’s share of EU gas imports fell to 15%, down from 45% in 2021, with LNG imports outflanking piped gas to Europe for a second year in a row.

Peaking fossil fuel dependence in advanced economies

In Europe fossil fuels fell to below 70% of primary energy for the first time since the industrial revolution, driven by demand reduction and renewable energy growth. US consumption of fossil fuels fell to 80% of total primary energy consumed.

Fossil fuel growth remains in developing countries

In India fossil fuel consumption was up 8%, accounting for almost all demand growth, and stood at 89% share of overall consumption. For the first time, more coal was used in India than Europe and North America combined. In Africa primary energy consumption fell in 2023 by 0.5%. Fossil fuels accounted for 90% of overall energy consumption, with renewables (excluding hydro) at only 6% of electricity. China’s full return post-Covid saw fossil fuel use increase to a new high, up 6%, but as a share of primary energy it has been in decline since 2011, down to 81.6% in 2023. China added 55% of all renewable generation additions in 2023, i.e. more than the rest of the world combined.

Diverse energy stories

Nick Wayth, EI chief executive, commented, “The progress of the transition is slow, but the big picture masks diverse energy stories playing out across different geographies. In advanced economies we observe signs of demand for fossil fuels peaking, contrasting with economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth.”

“In a year where we have seen the contribution of renewables reaching a new record high, ever increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged at just over 80% for yet another year,” remarked Simon Virley CB FEI, vice chair and head of energy and natural resources, KPMG in the UK. “With CO2 emissions also reaching record levels, it’s time to redouble our efforts on reducing carbon emissions and providing finance and capacity to build more low carbon energy sources in the global south where demand is growing at a rapid pace.”

Elsewhere, DNV has charted a pathway to a successful energy transition. Disscover the report here: https://africanreview.com/energy/the-pathway-to-a-successful-energy-transition

Hesham El Shamy, oil & gas sector lead at Aggreko AMEA. (Image source: Aggreko)

Hesham El Shamy, oil & gas sector lead at Aggreko AMEA, explores the feasibility of eliminating flared gas by 2030

140 billion cubic metres – that’s how much natural gas is flared annually, impacting human health, accelerating climate change, and releasing carbon dioxide, methane and black soot. The practice of flaring is a significant economic and environmental problem that the Net Zero Emissions by 2050 (NZE) aims to eradicate by 2030 by removing non-emergency flaring. It is an ambitious goal, but one that’s sorely needed as it can potentially prevent the release of around 365 million metric tons of CO₂ into the atmosphere. Achieving this result would also see a 95% reduction in flared gas volumes and take significant steps towards sustainability.

The challenge is to find equally sustainable and capable solutions that would allow the oil and gas industry to break its reliance on flaring. While companies have recognised the need to reduce flaring and are increasingly committing to curtail the practice, this is only a preliminary step. Finding a solution means finding a way through the energy trilemma characterised by a complex balance of energy security, environmental sustainability and energy equity.

The trilemma has to overcome three core challenges – the need for reliable and affordable energy; the urgency of mitigating climate change and reducing the impact on human health; and the equitable distribution of energy resources. Flaring prevents the accumulation of combustible gases while ensuring safe operations and processing, but it has a direct impact on the environment. It is also an inefficient use of valuable energy resources which goes directly against the goal of energy equity.

Flare-to-power

This is where flare-to-power can help oil and gas companies make the most out of a financially and environmentally challenging situation. Using flare-to-power solutions, companies can respond intelligently to the energy trilemma as they offer an innovative and sustainable route to capitalising on the latent energy that comes with flaring. Rather than treating the gas as a waste product, flare-to-power solutions harness it as a resource, using it to generate electricity and a source of clean energy.

Flare-to-power solutions deftly resolve the energy trilemma by providing energy security, environmental sustainability and energy equity. They also offer oil and gas companies the opportunity to optimise their total cost of energy which introduces economic efficiencies sorely needed by the sector right now. However, companies have legitimate concerns about the viability of the technology.

The first is the feasibility of using flaring as a source of energy – many oil operators lack the infrastructure needed to capture and use the gas they flare during operations which inhibits their investment into this solution based on cost and systems. The second challenge is reliability because flaring is a sporadic resource rather than a consistent one. Operators are concerned about relying on this as a source of power because flaring is intermittent and this could result in an inconsistent power supply.

So, how do companies tap into flaring as a source of power while addressing the very real concerns of reliability and infrastructure? The answer lies in taking a phased approach to flare-to-power using an energy service provider with the tools and technology capable of managing these challenges sustainably and intuitively. Aggreko works with companies throughout the multiple stages of a flare-to-power project, ensuring they benefit from a consistent energy resource while reducing the wasteful practice of flaring.

Using cutting-edge technology, Aggreko implements advanced measures such as real-time gas analysis and insights into gas composition every seven minutes to ensure consistent and verified gas quality supply, and by building solutions that align with environmental goals while ensuring extracted gas is used to its full potential. For example, when gas volume diminishes, Aggreko offers a phased reduction in the flare, ensuring a controlled transition, or when gas volumes are projected to increase, Aggreko provides a proactive scaling-up process.

Flared gas serves no productive purpose despite accounting for around 500 million tons of CO₂ – enough to power sub-Saharan Africa – so it makes sense to repurpose this wasted energy, turning it into electricity supply for countries that need it the most. With Aggreko’s modular approach to flare-to-power, companies can scale up and down in response to power demand or gas availability and easily navigate the challenges associated with flared gas while staying ahead of the energy trilemma.

Elsewhere, Aggreko has outlined how ‘relentless evolutions’ have helped bridge the energy gap in the African mining sector in an interview with Africa Review.